Investors must venture on regulated virtual assets platforms amidst JPEX incident: Lee

Lee said licencing protects investors and ensures a good risk control system.

Chief Executive John Lee called on investors to invest in virtual asset platforms that are licenced and regulated by the Securities & Futures Commission (SFC).

He added that the licencing regime was introduced to protect investors’ assets and investments and make sure there is a good risk control system that the money they put into investment will not be abused by the platform.

“We will be doing more public education (on the risks of virtual assets trading) for investors to know about the risks,” said Lee, reacting to the recent JPEX incident.

Prior to Lee’s speech, SFC already warned the public about JPEX’s supposed unregulated platform. In response, JPEX said it delisted all transactions on its earn trading interface whilst addressing it third-party makers during a probe into the platform. 

With this development, Lee said he ordered the SFC and Police to hold a media session to explain the JPEX case and what they are doing to protect investors.

Lee, moreover, said SFC will monitor the situation very closely and ensure that investors are sufficiently protected.